Recession-hit entrepreneurs delaying retirement

The effect of the market downturn has led to Britain's entrepreneurs delaying their retirement, according to the latest research from borro's Enterprise Ladder Report.

The study, polling small business leaders across a range of industries, showed that nearly a third (28%) of small business owners have admitted they have been forced to delay their retirement plans over the past three years. Of those aged 55-64 years old, just five per cent are expecting to retire in the next year, with a quarter (27%) believing their retirement to be six to ten years away, and a further eight per cent expecting to work for at least ten more years.

borro's Enterprise Ladder Report also found that a fifth (22%) of SME owners have been forced to lay off staff over the past three years, while nearly a quarter (24%) have had to delay investing in machinery and equipment. Nearly fifty per cent (43%) also reported that they currently have long term debt.

However, it's not just retirement plans that have been affected. Among those who have started a business since 2007, the average entrepreneurial age was 46 years old, compared to just 36 for those who set up their business before 2002.

Paul Aitken, CEO of borro, comments: "Britain prides itself on its entrepreneurial spirit, but the financial downturn has caused short-term financing issues for many small businesses. The impact of this lack of liquidity is such that small businesses have often had to make drastic cuts to personnel and equipment in order to stay afloat. Around sixty per cent of borro's customers are small business owners who have helped secure their business' future and growth through loans offered against their personal assets, an efficient option for helping a business through both periods of irregular cash flow and growth."